Inherited wealth vs. earned wealth

20 Replies

The 3 million in real estate I own, half of which is equity, was earned. I stood on my own two feet since 18, paid my own way and bought the houses with 100% of my own money that I saved from a high income career I had built.

Fast forward 7 years later, a slovenly, low income guy at my company just inherited enough money to buy a hand full of houses from his wife's family...

It really is amazing how just mere luck can catapult some people...Mind you he is still nowhere near my net worth, but still, it stings a little to see someone just get a huge leg up by chance...

If you have children they will likely get the same leg up by chance as well. Unless of course the markets turn and you lose all your dead equity.

The one shining light is that most people that do not work to gain wealth usually p*ss it away in short order.

Originally posted by @Thomas S. :

If you have children they will likely get the same leg up by chance as well. Unless of course the markets turn and you lose all your dead equity.

The one shining light is that most people that do not work to gain wealth usually p*ss it away in short order.

Studies show that the vast majority of lotto winners and those who inherit wealth (90% of the latter) lose the money within 5 years. True. Still stings a bit to see someone who otherwise couldn't make it all of a sudden get this huge inheritance and buy 1 million in real estate. I bought 3 million on my own with no money from anyone else....I did it through skill, not luck...

Everyone's got a bit of luck along the way.... nothing wrong with it. Not sure why it "stings" to see someone else catch a break or why you need to explain to us how "he is still nowhere near my net worth". His luck doesn't make your achievement better or worse....

I am the same as  you except I could not care less about how others manage in life. Not worth my time thinking about it although it may be a opportunity for you to make some money from his wealth. OPM is the route to growth. A slovenly low income guy may make a good money partner.

I will be leaving a great deal of money to my children but I have made it very clear to them that they will need to generate their own wealth now unlike so many others their age that are simply sitting on their duffs waiting to inherit their retirement funds.

@Jack B.

Although I understand why it stings, I want to offer a different perspective..  Clearly, you put a great deal of hard work and dedication to get where you're at now.  To me, there's something even more to be said about that because not everyone can do it.  Be proud of what you have accomplished so far and let this person's windfall of money fire you up which will keep driving you forward. 

   

Originally posted by @Jack B. :

The 3 million in real estate I own, half of which is equity, was earned. I stood on my own two feet since 18, paid my own way and bought the houses with 100% of my own money that I saved from a high income career I had built.

Fast forward 7 years later, a slovenly, low income guy at my company just inherited enough money to buy a hand full of houses from his wife's family...

It really is amazing how just mere luck can catapult some people...Mind you he is still nowhere near my net worth, but still, it stings a little to see someone just get a huge leg up by chance...

 Honestly, it never bothered me when someone else inherited money. I certainly will pass wealth on to my children. What bothered me was when I saw people who inherited wealth and blew it all making poor money decisions. It happens over and over again.

402-965-1853
Originally posted by @Anthony Gayden :
Originally posted by @Jack B.:

The 3 million in real estate I own, half of which is equity, was earned. I stood on my own two feet since 18, paid my own way and bought the houses with 100% of my own money that I saved from a high income career I had built.

Fast forward 7 years later, a slovenly, low income guy at my company just inherited enough money to buy a hand full of houses from his wife's family...

It really is amazing how just mere luck can catapult some people...Mind you he is still nowhere near my net worth, but still, it stings a little to see someone just get a huge leg up by chance...

 Honestly, it never bothered me when someone else inherited money. I certainly will pass wealth on to my children. What bothered me was when I saw people who inherited wealth and blew it all making poor money decisions. It happens over and over again.

 Assuming you have no relationship with that person why spend the effort caring what they do or don't do with their money?  I mean if this was a family member or similar then sure makes sense it'd be upsetting, but past that why care?

If he bought you a beer, would you be less bitter?

@Jack B.

This reminds me of a great interview i once read about, I believe it was with Henry Ford at the peak of his empire.  The person doing the interview asked Ford, "If you were to lose everything today; take away the money, the business, the assets, what would you do?"

Ford replied, "It  wouldn't change much, I would have it all back in a few years.  You can take away everything I earned, but you will never take away the experiences and knowledge I have gained over the years.  I would simply start another business and be right back where I left off." (I'm paraphrasing of course, I couldn't find the exact verbiage).

The whole point is that money doesn't make someone wealthy.  Assets do not make people wealthy.  Resourcefulness, originality, grit, determination, perseverance, etc. are what make someone successful.  You boot-strapped your real estate business with hard work and smarts.  Someone who inherits their wealth without any interest in learning the business or cannot find the right person to manage it for them, will quickly part with it.

Think of it this way... You got there from scratch once.  If a major depression hits and you both lose your shirts, who do you think will be back in the game shortly after?  I wouldn't put too much weight on dollar values as they are more of a scorecard and by themselves aren't useful at all.  It's when that dollar value is paired with skill and hard work that makes wealth worth something.  You have something worth much more (both tangible and intangible) than money.

Originally posted by @Matt K. :
Originally posted by @Anthony Gayden:
Originally posted by @Jack B.:

The 3 million in real estate I own, half of which is equity, was earned. I stood on my own two feet since 18, paid my own way and bought the houses with 100% of my own money that I saved from a high income career I had built.

Fast forward 7 years later, a slovenly, low income guy at my company just inherited enough money to buy a hand full of houses from his wife's family...

It really is amazing how just mere luck can catapult some people...Mind you he is still nowhere near my net worth, but still, it stings a little to see someone just get a huge leg up by chance...

 Honestly, it never bothered me when someone else inherited money. I certainly will pass wealth on to my children. What bothered me was when I saw people who inherited wealth and blew it all making poor money decisions. It happens over and over again.

 Assuming you have no relationship with that person why spend the effort caring what they do or don't do with their money?  I mean if this was a family member or similar then sure makes sense it'd be upsetting, but past that why care?

 I don't wish harm or foul upon anyone, and it pains me to see the financial mistakes that so many people make in their lives. I care because I want others to succeed.

402-965-1853
Originally posted by @Anthony Gayden :
Originally posted by @Matt K.:
Originally posted by @Anthony Gayden:
Originally posted by @Jack B.:

The 3 million in real estate I own, half of which is equity, was earned. I stood on my own two feet since 18, paid my own way and bought the houses with 100% of my own money that I saved from a high income career I had built.

Fast forward 7 years later, a slovenly, low income guy at my company just inherited enough money to buy a hand full of houses from his wife's family...

It really is amazing how just mere luck can catapult some people...Mind you he is still nowhere near my net worth, but still, it stings a little to see someone just get a huge leg up by chance...

 Honestly, it never bothered me when someone else inherited money. I certainly will pass wealth on to my children. What bothered me was when I saw people who inherited wealth and blew it all making poor money decisions. It happens over and over again.

 Assuming you have no relationship with that person why spend the effort caring what they do or don't do with their money?  I mean if this was a family member or similar then sure makes sense it'd be upsetting, but past that why care?

 I don't wish harm or foul upon anyone, and it pains me to see the financial mistakes that so many people make in their lives. I care because I want others to succeed.

 It's not harm or foul if someone spends there money differently than you, even if they run out. What you and that other person consider mistakes might not carry the same definition. Some of those same people who make "mistakes" could be your renters one day instead of buying their own home depending on the definition of mistake...

Originally posted by @Matt K. :
Originally posted by @Anthony Gayden:
Originally posted by @Matt K.:
Originally posted by @Anthony Gayden:
Originally posted by @Jack B.:

The 3 million in real estate I own, half of which is equity, was earned. I stood on my own two feet since 18, paid my own way and bought the houses with 100% of my own money that I saved from a high income career I had built.

Fast forward 7 years later, a slovenly, low income guy at my company just inherited enough money to buy a hand full of houses from his wife's family...

It really is amazing how just mere luck can catapult some people...Mind you he is still nowhere near my net worth, but still, it stings a little to see someone just get a huge leg up by chance...

 Honestly, it never bothered me when someone else inherited money. I certainly will pass wealth on to my children. What bothered me was when I saw people who inherited wealth and blew it all making poor money decisions. It happens over and over again.

 Assuming you have no relationship with that person why spend the effort caring what they do or don't do with their money?  I mean if this was a family member or similar then sure makes sense it'd be upsetting, but past that why care?

 I don't wish harm or foul upon anyone, and it pains me to see the financial mistakes that so many people make in their lives. I care because I want others to succeed.

 It's not harm or foul if someone spends there money differently than you, even if they run out. What you and that other person consider mistakes might not carry the same definition. Some of those same people who make "mistakes" could be your renters one day instead of buying their own home depending on the definition of mistake...

 If you are trying to convince me to go along with your line of thinking and not care that is fine, but I'm not going to do it.

I believe strongly it financial education and improvement and I want everyone to succeed, and I try my best to teach others the things I have learned. It will continue to bother me seeing people making financial mistakes, and I have no desire to wish financial harm upon anyone just so I can get a few renters.

402-965-1853
Originally posted by @Anthony Gayden :
Originally posted by @Matt K.:
Originally posted by @Anthony Gayden:
Originally posted by @Matt K.:
Originally posted by @Anthony Gayden:
Originally posted by @Jack B.:

The 3 million in real estate I own, half of which is equity, was earned. I stood on my own two feet since 18, paid my own way and bought the houses with 100% of my own money that I saved from a high income career I had built.

Fast forward 7 years later, a slovenly, low income guy at my company just inherited enough money to buy a hand full of houses from his wife's family...

It really is amazing how just mere luck can catapult some people...Mind you he is still nowhere near my net worth, but still, it stings a little to see someone just get a huge leg up by chance...

 Honestly, it never bothered me when someone else inherited money. I certainly will pass wealth on to my children. What bothered me was when I saw people who inherited wealth and blew it all making poor money decisions. It happens over and over again.

 Assuming you have no relationship with that person why spend the effort caring what they do or don't do with their money?  I mean if this was a family member or similar then sure makes sense it'd be upsetting, but past that why care?

 I don't wish harm or foul upon anyone, and it pains me to see the financial mistakes that so many people make in their lives. I care because I want others to succeed.

 It's not harm or foul if someone spends there money differently than you, even if they run out. What you and that other person consider mistakes might not carry the same definition. Some of those same people who make "mistakes" could be your renters one day instead of buying their own home depending on the definition of mistake...

 If you are trying to convince me to go along with your line of thinking and not care that is fine, but I'm not going to do it.

I believe strongly it financial education and improvement and I want everyone to succeed, and I try my best to teach others the things I have learned. It will continue to bother me seeing people making financial mistakes, and I have no desire to wish financial harm upon anyone just so I can get a few renters.

 my only line of thinking was maybe don't be so quick to judge what others do with their money... but do as you please.

Old saying..."You can tell what God thinks of money by the people He gives it to"

The journey of building something is one of the best parts of success. You get more reward than he does. In addition to all the experience you have earned you probably also experience a greater sense of satisfaction and accomplishment than he does.

@Jack B. ,

Life isn't a money race.. he didn't catch up to you because he inherited it.       Your only competition is yourself, you do you.. I do me, and we're good.. .same for this guy.    Chances are high he'll blow it, but how does it harm you in any way if he becomes successful?      Remember-- there is enough success to go around!   If anything, why don't you go talk with him and see about doing a deal together if you have similar goals??

I will say, I have a friend of a friend, who got a small inheritance ($50K)  and she got into real estate, we tried showing her some amazing deals where  they'd be cash cows of $+600/mo..... but what did she do... she is currently in the process of mortgage fraud (saying it's owner occupied, but it's an investment property) to buy a super nice, $220K home,... and she is advertising to rent the place before she even owns it..  the house she's buying  will likely only generate $50-100 or so in income, and not to mention. --fraud!!! . hello... but anyhow-- for each their own, inherited money isn't always the smartest, that's why most blow it.   Stuff works itself out, just focus on yourself and your goals!

@Jack B. I could care less about how many dollars somebody has. Wealth isn't measured in dollars it is measured in time. How long a person can live at his current standard without working is his measure of wealth. This guys measure of wealth today is how long can he live before the money is gone. Somebody that spends foolishly will always be poor. If you spends wisely and invest wisely you can live indefinitely without working. this provides the freedom to do as you please when you please. That is true wealth. It's not about dollars. It's about time. RR.

@Jack B. You should make your slovenly co worker your new best friend. He has money and obviously will lose it all in short order without guidance so you should be his guiding hand. Think of his good fortune as your own. No reason you can not benefit.

Wow, you are so impressive.  You "own" 3 million in real estate (but really you don't since you imply that you have 1.5 mil in mortgages.  Yikes).  You tear down some guy who is "slovenly" and "low income" as if that makes him of much less importance than you.  Then you have to come brag about how much more your net worth is than his net worth on an internet forum.  What does any of this really matter anyway?

Perhaps you should go run for President...

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